Many app teams default to automated campaigns. The logic is simple: less manual work, more scale. But for niche apps, automation often misfires.
One AI-powered productivity app, built to help professionals with scheduling and time management, faced exactly this problem. They had installs coming in, but their automated campaigns were wasting spend on people who didn’t need the solution.
The challenge: reach the right users without burning budget.
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TL;DR
- Automated broad targeting wasted spend on irrelevant audiences.
- Manual, interest-based targeting focused on small business owners and professionals.
- CPA for registrations dropped by 50%, even with the same creatives.
- Efficiency improved across campaigns, unlocking sustainable growth.
The Challenge: When Automation Misses the Mark
The client initially relied on automated setups. With a niche product like scheduling support, this led to inefficiencies.
As Denis Otrjachnin from REPLUG’s Paid UA team explained:
“It’s not an app anyone can use. That’s why broad targeting didn’t make sense. We made a hypothesis that interest-based targeting for small business owners would perform better, and the results proved it right.”
The opportunity was clear: stop spending on irrelevant audiences and focus only on the professionals most likely to benefit.
The Strategy: Hypothesis, Test, Adjust
1. Identifying the Turning Point
Denis recognized the mismatch early:
“I already saw broad campaigns running. The first thought was simple: this product is niche. If we can target small business owners directly, it’s going to be more effective.”
Instead of sticking with automation, the team tested manual interest-based segments.
2. Choosing the Right Audiences
There was no magic filter, but logical choices worked: startups, small business owners, and active businesses.
“It’s not about one perfect signal. You pick interests that make sense, with an audience size big enough to run. If it doesn’t work, you adjust. If it does, you scale.”
3. Same Creatives, Different Results
Interestingly, the drop in CPA came without changing creatives.
“Since the creatives stayed the same, the weight of performance clearly fell on targeting. Of course, creatives need optimization too; fatigue always comes. But in this case, targeting made the difference.”
Results: Efficiency Over Volume
- CPA for registrations dropped by 50%.
- Campaign efficiency improved while spend stayed consistent.
- Budgets were funneled toward high-intent users instead of wasted impressions.
The outcome: a smarter, more efficient UA approach tailored to a niche product.
Key Insights for Niche Apps
- Automation isn’t always the answer. For broad consumer apps, it works. For niche apps, it often wastes budget.
- Hypothesize, test, prove. Denis’s shift wasn’t guesswork; it was a hypothesis validated by results.
- Targeting can outweigh creatives. Even with the same assets, better audience segmentation slashed CPA.
- No single formula. Sometimes automation wins, sometimes manual targeting. You need to test both.
FAQ
1. When should niche apps go manual instead of automated?
If your app serves a specific user base (like small business owners), manual targeting is often more effective. Test both, but don’t rely blindly on automation.
2. What’s the risk of staying broad?
You’ll pay for installs or sign-ups from users who don’t need your product, dragging down efficiency.
3. Does this mean creatives don’t matter?
Creatives are critical - but in this case, targeting alone cut CPA in half. The right audience matters just as much as the right message.
4. What’s the best approach for new apps?
Start with a hypothesis. If your app is niche, test manual interest-based targeting. If your app has mass-market appeal, automation may be more efficient. Always compare results.
Final Thought
Automation can be powerful, but it doesn’t fit every case. For niche apps, audience targeting often matters more than scale.
In this campaign, simply shifting from broad automation to manual interest segments cut CPA by half, all with the same creatives.
👉 Wondering if your app is stuck in inefficient broad targeting? Let REPLUG’s UA team review your campaigns.
